Collaborative SIG Presentation:Projects to Profit Fundamentals

Becky Alvarez, Rysigo Technologies Corp.

andWendy Lamar,

Rolta TUSC

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• Agenda– About the Presenters– Introduction– Configuration– Flow

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• Senior Management Consultant with Rolta TUSC

• Over 13 Years Experience Implementing and Supporting Oracle Applications

• OAUG Project SIG Development Liaison– Duties Include Gathering Customer ERs and

Facilitating Prioritization and Communicating Those to Oracle Product Strategy

Wendy Lamar

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Becky Alvarez – Director of E&C Practice

becky.alvarez@rysigo.com

WHAT WE DO

Rysigo Technologies Corp. provides Collaborative Work Management software and services.

STRATEGIC CONSULTING SERVICES

• Business and Finance Transformation

• Management Consulting

• ERP, CRM and Analytics Reporting

• Applications Management

SPECIALIST AREAS

PRODUCTS

• Collaborative Proposal Management• Collaborative Risk Management• Risk Management for Oracle Projects

• Engineering and Construction• Professional Services• Energy and Utilities• Hi Tech / IT• Transportation• Oracle EBS, CRM, Primavera, OBIEE• Global Deployments, Shared Service Centers• Global Program Offices™• Project Centric Organizations

70 years of collective experience designing, building and implementing

many of the Oracle Application is use today.

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Introduction

Where are we in the P2P Flow

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Where are we now in P2P?Quote to

Cash

Procure to Pay

Design to Build

Accounting to Financial Reports

End

Start People to Paycheck

Project to Close

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Configuration

How to Set Up Projects for P2P

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Configuration• Define Payables Options for Discounts

– Prorate Expense: Discount prorated across all distribution lines

– Prorate Tax: Percentage of discount prorated across all tax distribution lines

– System Account: Credits the total discount to the discount taken account defined in AP Financial Options

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Configuration• Profile Options

– PA: Allow Adjustments to Receipt Accruals and Exchange Rate Variance

– PA: Allow Override of PA Distributions in AP/PO– PA: Default Expenditure Item Date for Supplier

Cost– PA: Default Expenditure Organization in AP/PO

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Configuration• Supplier Invoice and Project Related

Purchasing Account Generators• Default Supplier Cost Credit Account

– (PA System Options)

• Interface AP & PO DFF Profile Options– PA: Transfer DFF with AP

• Expense Reports, Vendor Invoices

– PA: Transfer DFF with PO• Receipt Accruals

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Configuration

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Project Suite Considerations• When running the process ‘PRC: Interface

Supplier Costs’ ensure that the following parameters are set to Yes:– Interface Supplier Invoices– Interface Receipt Accruals– Interface AP Discounts

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Project Suite Considerations• All modules have a Create Accounting process

that interfaces journal entries to Subledger Accounting. The parameters control interface to GL and posting of GL journal entry.

• The Create Accounting process per module typically must complete successfully prior to interface of expenditure item to Project

• Transactions create journal entries in the source module – cost collects in Project module

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P2P Flow

How Contract/Billable Projects are updated by POs

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P2P Process Flow

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Create Requisition and/or PO• Requisition or PO Line is Entered Referencing:

– Project– Task– Expenditure Item and Expenditure Organization– Account Generator Derives Default Charge

Account, Accrued Liability (Inventory AP Accrual), and Variance Accounts

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Create PO

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Distribute to Project

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Updates Committed Costs

Before

After

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Receive Goods / Confirm Work• Receive Goods / Confirm Work - Accrue on

Receipt Interfaces Cost to Project @ PO Price– Receiving Transaction Processor– Create Accounting for Receiving

DR Inventory or Expense Account OR CIPCR Accrued Liability

– PRC: Interface Supplier Cost Parameter ‘ Interface Receipt Accruals’ = YES

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Receive Goods / Confirm Work

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Match Vendor Invoice to PO• Vendor Invoice Match to PO - Variances are

Interfaced to Project (New Expenditure Item)– Validate Vendor Invoice– Create Accounting

DR Accrued Liability CR Accounts Payable DR/CR Price Variance

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Match to PO

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Update ProjectsBefore Supplier Invoice for Match against PO

After $5,000 Supplier Invoice Entered and Interfaced to Projects. Period to Dateand Inception to Date Costs increase by the invoice amount and the Commitment is reduced by the invoice amount.

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Pay Vendor Invoice• Pay Vendor Invoice - Discounts Taken are

Interfaced to Project (New Expenditure Item)– Create Accounting

• DR Accounts Payable• DR Discounts Taken**• CR Cash

– PRC: Interface Supplier Cost Parameter ‘Interface Payment Discounts’ = YES

**Discounts Taken dependent upon AP configuration

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P2P Flow

How Capital Projects are updated by POs

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Capital Project to Assets Flow

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Asset Charges – AP to PA• AP Distribution Line Charges Project and Asset

Clearing Account:– Contract Project

• Payables Interfaces the Cost to Oracle Assets for Capitalization and GL Accounting

• Payables Interfaces the Cost to Oracle Projects for Cost Collection to the Project and Reporting; No GL Impact

– Capital Project• Payables Interfaces the Cost to Oracle Projects for

Capitalization, GL Account Generation, Project Cost Collection and Reporting. Journal Entry Sources are Payables and Assets.

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Capital Project• Create Capital Project

– Add Asset Definition including Asset Attributes at Project or Task

• Collect Costs against Project– Distribute all Costs, Generate Cost Accounting

Events, Create Accounting BEFORE Generating Asset Lines

– Summarize your Project Data (Project Performance or Project Summary) BEFORE Generating Asset Lines

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Project Asset Setup

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Project Task Asset Line

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Project Task Asset Setup

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Capital Project• When Ready to Place the Asset in Service,

Update the Asset Assignment with an Actual In Service Date (Current Period)

• Run the PRC: Generate Asset Lines process to Create Summary Asset Lines– Adjust Lines, Associate Unassigned Lines– Auto Accounting Rules Determine Journal Entry

DR Asset CR CIP

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Update Asset Service

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PRC: Generate Asset Lines Creates the Asset Line(s)

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Capital Project• Run the PRC: Interface Assets to Oracle Assets

process• In Oracle Assets Review and Post Mass

Additions• Monthly: Run Depreciation

– Creates Accounting • Interfaces and Posts Journal Entry to GL

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Interface Asset to FA

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View Asset in FA after Additions

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Contract Project• Create Contract Project

– Include Customer and Billing Setup

• Collect Costs– Distribute Costs– Generate Cost Accounting Events– Create Accounting

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Customer Invoice Flow

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Revenue Recognition Flow

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Contract Project - Revenue• Generate Draft Revenue based on Distribution

Rule of Project– Release

• Generate Revenue Accounting Events• Create Accounting

– Transfers and Posts Journal Entry to GL

DR UBR CR Revenue

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Contract Project - Receivables• Generate Draft Invoice based on Distribution

Rule of Project– Approve and Release– The next three steps can be combined in PRC:

Submit Interface Streamline (Option XI)

• PRC: Interface Invoices to Receivables• Autoinvoice Import• PRC: Tieback Invoices from Receivables

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Q&A

AQ&

Wendy Lamar: lamarw@tusc.com Becky Alvarez: becky.alvarez@rysigo.com 45